Demands to establish an independent Ministry for Social Insurance escalated due to problems between the social insurance funds authority and the public treasury. The indebtedness of the Treasury to Insurance funds reached 145 billion EGP (U.S. $24.33 billion), according to recent statements by Assistant Minister of Finance, Mohammad Meit. He called for the need to expedite the application of Insurance No. 135 of 2010 to eliminate this dangerous situation. Experts called for the need to end this ongoing situation, which is worsening every year. A source said insurance funds are loaded with the burdens, unrelated to work, such as pensions and military and reach up to 6.5 billion EGP (U.S. $1.09 billion) per year. Their contributions only add up to around 270 million EGP (U.S. $45.3 million), while the military gets their pensions through special law, which makes them ineligible for insurance funds. The Undersecretary of the Ministry of Insurance, Mohamed Attiya Salim, said the worsening debt situation, which increases annually on the public treasury, must be resolved as it affects the national budget. Salem is opposed to insurance funds being responsible for military pensions and he demands to rectify the situation by letting the public treasury deal with such pensions. He is also opposed to the new insurance since this law will exacerbate the treasury's debt situation, especially since it is based on a 20 percent investment of insurance funds in the stock market. The remaining 80 percent in treasury bills and government bonds finance the budget deficit. The head of insurance studies at the Faculty of Commerce at the University of Cairo, Sami Najib, said the committee was formed to resolve the debt crisis and will not be able to reach a solution as long as this state continues. He said the only solution is to separate insurance funds from the Ministry of Finance to have a separate ministry with an independent budget. The Secretary General of the independent union for pensioners and member of the National Authority for Social Insurance, Said el Sabagh, said the Ministry of Finance announced their inability to provide 3.5 billion EGP (U.S. $587.3 million) for the application of minimum pension, while their debt to Insurance funds reached 145 billion EGP (U.S. $24.33 billion). He suggested separating insurance funds from the Ministry of Finance and establishing a separate ministry to manage the insurance funds. The Assistant to the Minister of Finance for Insurance and Pensions affairs, Mohammed Meit, announced the high debt situation of the Treasury to the social insurance fund totals 145 billion EGP (U.S. $24.33 billion) on June 30, 2011, compared to the 122 billion EGP (U.S. $20.5 billion) last year. He stressed the serious problem of continuing this situation and suggested it be rectified quickly so the Egyptian economy does not collapse due to the obligations of the Treasury.
